Michigan Employer Advisor: September 2024

Check MiWAM Online Account to Make Sure Everything’s Up to Date

As we approach the end of the year the Michigan Unemployment Insurance Agency (UIA) has an important reminder for business owners and managers. It’s important that you maintain oversight of your Michigan Web Account Manager (MiWAM) online account to ensure that all reports are filed on time and/or corrected. You also want to make sure that all taxes owed to UIA are paid. 

If a business is late in filing any quarterly wage/tax reports and/or has reports that contain errors, or there are unpaid taxes to the UIA it could result in penalties and interest on your account. It also has serious consequences on how the UIA calculates an employer’s Annual Tax Rate and whether the employer will qualify for a reduced Taxable Wage Base rate for the 2025 calendar year.

Employers should do the following to maintain oversight of their MiWAM account:

Maintain a username and password for logging into the MiWAM account.

• Login every month or quarter to MiWAM to review correspondence and balances owed on the account. Look for a Form 1107 Notice of Error, Form 1448 Determination of Assessment, Form 1494 Collection Notice, Form 6385 Notice of Intent to Withhold Federal Income tax - TOP (Treasury Offset Program), or Form 1771 Tax Rate.
• Confirm all contact information (addresses, email address, and phone number) is correct.
• Confirm all Professional Employer Organization or Power of Attorneys are correctly listed on the account with current contact information.

When in your MiWAM account it is important to check for any alerts showing a balance owed (this is listed on the main home page). It is important to keep in mind that while the current quarterly report may have been filed on time and taxes paid, penalties and interest may have accrued due to errors or missing reports for past quarters.

Check for missing Quarterly Wage/Tax reports and balances owed.

---

Late Reports or Payments Impact Tax Rates, Taxable Wage Base for 2025

The Michigan Unemployment Insurance Agency (UIA) is preparing to calculate the 2025 tax rate for contributing employers. The quarters used to calculate the rate will be the 3rd and 4th quarters of 2023 and the 1st and 2nd quarters of 2024.

The Taxable Wage Base (TWB) is the amount of an employee's wages that are taxed by UIA and paid by the employer each calendar year. The TWB for 2024 is $9,500 per employee. The Michigan Employment Security Act states that if the UIA Trust Fund maintains a balance of at least $2.5 billion for two consecutive quarters then the TWB can be reduced to $9,000 for employers whose accounts are current with all reports filed and taxes paid in full.

If Wage/Tax Reports for either of those quarters have not been filed or corrected a 3 percent non-reporting penalty will be added to the computed tax rate for 2025 and result in a higher tax rate. Even if you did not have payroll for one of these calendar quarters, you still must file a zero wage Quarterly Wage/Tax report.

Here are some key dates to keep in mind:

• September: UIA 1761 Potential Tax Rate Increase letters will be mailed with information about missing reports for those quarters.
• December: UIA 1771 Tax Rate and Penalty Determination letters for the 2025 tax rate will be mailed at the end of this year.

---

Use Correct Address to Mail Tax Payments, Documents to UIA

Mailing tax payment(s) and correspondence to an incorrect address may delay how long it takes to process payment(s) or address concerns. Using a wrong address could also result in additional interest and penalty charges.

Be sure to use the correct address when mailing documents and checks. Include the Employer Account Number (EAN) on all correspondence, documents, checks, and money orders. When sending checks, include a UIA 4101 payment coupon, which is available to fill out and print at Michigan.gov/UIA.

Mail Correspondence/Documents to:

Unemployment Insurance Agency - Tax Office

P.O. Box 8068

Royal Oak, MI 48068-8068

Mail Payment to:

Unemployment Insurance Agency

State of Michigan

P.O. Box 33598

Detroit, MI 48232-5598

---

Recap of News About Upcoming MiUI

Over the past six months, the Michigan Unemployment Insurance Agency (UIA) has shared important information and updates with employers regarding the upcoming launch of its new computer system, known as MiUI.

Below is a summary of the most significant information shared to help all employers, Third Party Administrators (TPAs) and additional partners be informed and prepared for this transition. 

In Case You Missed It 

The Michigan UIA is embarking on a significant transformation journey with the introduction of MiUI. 

MiUI will replace the current, decade-old Michigan Web Account Manager (MiWAM) system. This modernization effort aims to enhance flexibility, efficiency, and user experience for employers, TPAs, and claimants. 

The MiUI system will be launched in two phases: Phase 1 will focus on Tax-specific functions and will be most impactful to employers, TPAs and external partners. Phase 2 will focus on Benefits services, which will mainly affect claimants and claimant support systems. 

Key Features and Benefits 

Here are some of the changes and benefits that have previously been shared: 

• Enhanced Wage Submission: MiUI will allow manual wage entry, copying reports from previous quarters, and will support multiple file formats (XML, ICESA, EFW2, Delimited), providing greater flexibility.
• Employer Registration: Employers will have a standardized timeline of 2-4 weeks to submit required documentation during registration, ensuring up-to-date and accurate data.
• User-Friendly Design: MiUI will prioritize efficient workflows and an intuitive user interface.

Preparation and Transition 

To prepare for a smooth transition to MiUI, employers and TPAs are advised to take a few simple steps:

• Confirm/Update Contact Information: Employers should ensure their contact details in MiWAM are current, including email addresses and physical/legal addresses. For a step-by-step guide on how to update your contact information in MiWAM, watch this short How-To video.
• Designate Correct TPAs: Verify that the correct TPA is designated in MiWAM to receive timely updates.
• Internal Communication: Inform relevant departments (IT, Accounting, HR) about the upcoming changes and that more information will be released as the system is developed.

Communication and Support 

It’s important to feel confidently informed. Here’s how you can stay in the loop with upcoming changes throughout the MiUI system rollout:

• Regular Updates: UIA will continue to provide regular updates through the Employer Advisor newsletter, employer seminars, and targeted communications. Be sure key decision-makers in your organization have subscribed to receive the free monthly publication. They can sign up through the Department of Labor and Economic Opportunity website.
• Feedback and Partnership: UIA encourages feedback from employers and TPAs to refine the system and communication strategies: You can send your questions to UIA-EmployerAdvisor@Michigan.gov.
• Support Channels: Employers can reach out to the Office of Employer Ombudsman for assistance and inquiries by calling: 1-855-484-2636, then select Option 4.

 

Get Caught Up

For full MiUI content from the past six months, click below to view previous editions of the Employer Advisor newsletter:

• March
• April
• May
• June
• July 
• August